This week we announced the installation of three Siemens Paramount® Delivery-point Bar Code Sorters at our facility in Hamburg, Pa. This installation provides a common production platform across our national footprint and allows our customers to leverage our volume and industry-leading postal strategy to maximize their postage savings.
With this installation we will have a total of five Delivery-point Bar Code Sorters in Hamburg. This equipment helps reduce postage costs by commingling mail into common mail trays and can even sort the most challenging letter-size mailpieces.
The ability to drive the lowest postage cost per piece is especially important given the current uncertainty in the postal industry. As you’re likely aware, the Postal Regulatory Commission (PRC) recently rejected the Postal Service’s request for an exigent price increase. Although this was good news for the mailing industry, the Postal Service is now likely to request a (smaller) price increase under the CPI cap that would take effect in the spring. In addition, we are still waiting for the PRC to issue its opinion on the Postal Service’s request to go to five-day delivery. Most importantly, we need Congress to act to resolve the prepayment and overpayment issues related to retiree health care and pension funds before these legacy payments create cash flow difficulties for the Postal Service.
Our commingling expertise helps mitigate this uncertainty by reducing the cost to send direct mail. It also helps provide more predictable in-home delivery for customer acquisition, loyalty and engagement programs, which can lead to increased response and conversion rates. This is particularly important to direct marketers with integrated multichannel campaigns, who staff their call centers or update their social media programs based on the expected delivery of a direct mail package.
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